HomeMy WebLinkAboutResolution 2014-0020CITY OF WHEAT RIDGE, COLORADO
RESOLUTION NO. 20
Series of2014
TITLE: A RESOLUTION AUTHORIZING THE CITY MANAGER TO
NEGOTIATE A REDEVELOPMENT AGREEMENT AND
RELATED DOCUMENTS IN CONNECTION WITH THE
PROPOSED REDEVELOPMENT AT THE SOUTHWEST
CORNER OF WEST 38n1 AVENUE AND KIPLING STREET.
WHEREAS, the City of Wheat Ridge, Colorado (the .. City '') is a home ruJe
municipality and political subdivision of the State of Colorado organized and existing under a
home rule charter pursuant to A rticle XX of the Constituti on of the State of Colorado; and
WHEREAS , the City Council of the City established the Wheat Ridge Urban
Renewal Authority (the "Authorit y'') on October 18, 1981; and
WHEREAS. the City Council has adopted the 1-70/Kipling Corridor Urban
Renewal Plan, as amended (the ''Plan"); and
WHEREAS , MVG Development of Denver ( .. MVG") has submitted a proposal
to the City and the Authority to redevelop the southwest comer of West 381h Avenue and Kipling
Street (the .. Project"), which is in the Plan area: and
WHEREAS, the City Council of the City has determined that it is in the best
interests of the City and its citizens to assist in the redevelopment of the Project in order to
remediate blight. promote employment and increase sales tax revenues~ and
WHEREAS, in order to finance certain eligibl e improvements for the Project, the
Authority expects to issue bonds or enter into a loan with a bank or other financial institution
(the "Lender") in the approximate amount of $2.6 million (the "Loan'') with such Loan to be
payable solely from property tax increment tax revenues and sa les tax increment revenues to be
generated from the redevelopment of the Project; and
WHEREAS. in connection with the clos in g on the Loan and in order to help
facilitate the redevelopment of the Project. the City expects to adopt a resolution (the
"Replenishment Resolution") sett in g forth its non-binding statement of present intent to
appropriate funds to replenish any re serve fund securing the Loan in the event of a draw on such
reserve fund, or to appropriate funds to make direct payments on such Loan to the extent that
there are insufficient tax increment revenues avai lable to make any required Loan payments; and
WHEREAS, in order to help facilitate the redevelopment of the Project, the City
expects to appropriate between $800,000 and $1,000.000 of available City moneys to finance a
portion of certain eligible improvements for the Project (the ·'City Contribution"); and
WHEREAS, the City, the Authority and MVG expect to enter into a
Redevelopment Agreement (the "Redevelopment Agreement'') that sets forth the rights and
responsibilities of each party with respect to the financing and construction of the Project,
including, without limitation, that the net proceeds of the Loan and the City Contribution shall be
applied to the payment or reimbursement of$3 .0 million of eligible Project costs.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Wheat Ridge, Colorado, that:
Section 1. The City Council hereby finds and determines, pursuant to the
Constitution , the laws of the State and the City's home rule charter, and in accordance with the
foregoing recitals, that the redevelopment of the Project, the execution and delivery of a
Redevelopment Agreement in connection therewith, making the City Contribution and adopting
a Replenishment Resolution in connection with the Loan, are necessary. convenient and m
furtherance of the City purposes and are in the best interests of the inhabitants of the City.
Section 2. The City Manager of the City (the "City Manager'') and other
officers, employees and counsel of the City are hereby authorized and directed to take all action
that they deem necessary and appropriate to facilitate the redevelopment of the Project, including
without limitation, the negotiation and preparation of the Redevelopment Agreement. the
preparation of the Replenishment Resolution and the preparation of a supplemental appropriation
for the City Contribution.
Section 3. Upon conclusion of the negotiations between the City, the
Authority, MVG and the Lender. and prior to executing and delivering the Redevelopment
Agreement or making the City Contribution , the City Manager shall present the City Council
with one or more resolutions authorizing the execution and delivery of the Redevelopment
Agreement, the making of the City Contribution. the Replenishment Resolution and approving
all other docun1ents and actions required in connection with closing the Loan.
Section 4. This Resolution shall be effective immediately.
DONE AND RESOLVED this ~ay of 'rJJMefu. 2014.
[SEAL]
Attest:
2
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